House price rise of 8pc may be conservative estimate

The price increase prediction, made in RICS’ annual housing market forecast, is based on what it describes as “the acute imbalance between burgeoning buyer demand and sluggish supply.”

But Brian Holt, MD of the estate agency which has offices in Leamington, Kenilworth, Earlsdon and Coventry city centre, says the rise could be even greater than eight per cent in mid Warwickshire.

He explained: “If the Bank of England keeps on with low interest rates or more quantitative easing and since the general election is less than 18 months away, there is every chance that these predictions will be right because there is still a shortage of supply.

“There are some quite large developments now on the way in this area which will, in time, help satisfy the high level of demand.

“Warwick District Council’s development strategy outlines a need for more than 6,000 new homes over the next 15 years.

“These include 4,500 in Leamington, Warwick and Whitnash, 700 in Kenilworth and 1,000 distributed among villages.

“But that will not satisfy the demand over the next 12 months, so the RICS could in fact be conservative for this area, where we are already seeing rises.

“Having said that, this may move the demand from Leamington, Kenilworth and Warwick northwards to Coventry over the next 12 months or so until the projected meaningful developments get under way.

“Prices there are more affordable, with three bedroom terraces still available for as little as £100,000.”